lovebug5

Acct. Included in CH7 Discharge, Rec'd Dunning Letter??

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Hi All,

I received a wonderful piece of mail on Friday from a CA who is holding an account that was included in my BK. After realizing that the account was on my CR after filing, I disputed the account because the debt is completely and utterly invalid. Ironically, after disputing, the CA has now decided to once again contact me.

After receiving the letter I contacted them via phone and spoke with a very well-informed (note the sarcasm) representative and informed him that they were attempting to collect a debt that was discharged through Chapter 7 months ago.

His response, "Ma'am, this debt was just sold to our collection agency and we are attempting to collect this debt."

So - my obvious questions...

1. This is obviously a MAJOR violation of my bankruptcy discharge, correct?

2. And this majorly obvious violation of my discharge is something that I should take care of, correct?

I'm not as familiar with the bankruptcy laws as I should be, as I have been studying the FCRA instead...Does anyone know where this violation is and what steps I should take moving forward to have this rectified?

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Definitely a major violation of your discharge, and before you have to pay your BK attorney another dime to write a letter to these jerks, write your own letter.

You tell them they are to immediately cease and desist all collection actions as the account was discharged in your bankruptcy filed xx/xx/xx, discharged on xx/xx/xx. Give 'em the case number just so they can't say a thing. Then you tell them that if they don't remove their collections from your reports and get lost, you will file a motion for contempt and request for sanctions against them in bankruptcy court (mention the district) and then they can explain to a Federal Judge just why they are illegally trying to collect on a discharged debt.

As always, send it certified, RRR and wait and see what happens. ;)

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Definitely a major violation of your discharge, and before you have to pay your BK attorney another dime to write a letter to these jerks, write your own letter.

You tell them they are to immediately cease and desist all collection actions as the account was discharged in your bankruptcy filed xx/xx/xx, discharged on xx/xx/xx. Give 'em the case number just so they can't say a thing. Then you tell them that if they don't remove their collections from your reports and get lost, you will file a motion for contempt and request for sanctions against them in bankruptcy court (mention the district) and then they can explain to a Federal Judge just why they are illegally trying to collect on a discharged debt.

As always, send it certified, RRR and wait and see what happens. ;)

Oh Lady, we're on the same page. I sat around and thought about whether or not I really wanted to trust my BK attorney with this and my answer was a pretty quick "No." I started doing some research online into Motions and Requests for Sanctions and realized that I could very well write the letter myself. :)

So thank you for that!

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Just as an update...

The silly little CA that wrote me the initial letter has since called me again regarding the discharged debt. Again, I was told by their representative that the debt was just purchased in September and that they have the legal right to collect on the account. As before, I informed this innocent representative that they've been reporting on my credit reports since June of 2006 and read her the account number directly off of my report.

When I told her that I had filed for a CH7 and was discharged, that I have been contacted by them three times and that each attempt to collect the debt was yet another violation of my injunction...Her response was, "Oh ****."

I began to laugh and said to her, "Please don't take my frustration as an insult to you. I understand that this is your job and that you have been trained to do this. However, I hope you can understand why I am so incredibly frustrated with your company. My anger and frustration is directed at your owners but apparantly they're too important to take consumer phone calls. I know that this phone call is being recorded, and I would like you to know that I am taking transcription of our entire conversation as we speak. Please note in the computer system that this is my second call to your company regarding your collection attempts and that all contact must immediately cease. I have sent a letter to your legal department regarding this matter and expect this to be handled immediately."

Her response to me, "Thank you for being so polite, ma'am. I understand your frustration and have noted everything in the computer. My name is ____ for your records. I'm sorry that you have had to deal with this and hope that it is taken care of immediately."

My letter basically read as follows:

To Whom it May Concern:

I have received your letter of September 21st, 2007, which was a written attempt to collect the above referenced and alleged XXXX debt. Additionally, I have been contacted by two different representatives with your company regarding this debt in the weeks following your written communication.

Please be advised that this debt was included in my Chapter 7 Bankruptcy filing on XXXX, which was discharged on XXXX (Docket #: XXXX, United States Bankruptcy Court, XXXX).

Your collection agents have attempted, on two different occasions, to convince me that XXXX just purchased this debt in September of 2007. As of my last conversation with XXXX on October 5th, I informed her that your company has been reporting this account on my credit reports since June of 2006 and that I have copies of my credit reports showing the above information. I politely asked XXXX to notate in the computer system that this account was included in a Chapter 7 Bankruptcy, that your company has been reporting this to the credit bureaus since June of 2006, that the Chapter 7 Bankruptcy was discharged in XXXX, and that I am to no longer be contacted regarding this matter.

All attempts to collect this debt have been a clear violation of my permanent Bankruptcy injunction as your company was reporting the debt prior to my filing and has attempted to collect this debt since my discharge in XXXX. I have been contacted via mail once and via telephone twice, all of which have been documented, and each of which are a separate legal violation.

At this point, I have every intention of filing a Motion of Contempt and Request for Sanctions against XXXX for all three violations. Additionally, I am intended on reporting this situation to the Better Business Bureau, the Federal Trade Commission and the Attorney General in both the State of XXXX and State of XXXX.

If you would like to prevent future legal proceedings and prevent yourself from having to explain why you have been attempting to collect a discharged debt to any Bankruptcy judge, this collection account must be removed in its entirety from my credit reports by October 17th, 2007.

Because I am sending this letter directly to your attention via fax, I will have a transmission report which states the status of the transmission itself. This transmission report will serve as proof of your receipt of this letter and notification and will be provided to the BBB, FTC, Attorney General and Bankruptcy Court should you choose to not rectify your wrongdoing.

I have taken the liberty of attaching the following documents to this fax transmission:

1. A copy of the letter sent to me by XXXX, dated September 21st, 2007 in regards to reference number XXXX.

2. A copy of my credit report showing the above-referenced account being reported by XXXX, with the same reference number as stated in your original letter and the date of first reporting as June of 2006.

Please also note that I do have audio documentation of voicemail messages from your company in addition to statements showing inbound and outbound calls to your call center since receiving your letter.

I look forward to seeing the removal of this account from my credit reports by October 17th, 2007. Otherwise, I look forward to meeting with you in court.

(And yes, it was sent via regular mail too.)

So we shall see. :)

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Update: I received this letter in the mail today...

Dear Lovebug5,

In response to your prior correspondence, please be advised that XXXX has closed its collection file and ceased collection efforts with respect to the foregoing account. Please be assured that this matter has been updated at the credit bureau(s) as account reported in error, please delete from credit file. Please allow 3-4 weeks before requesting a copy of your credit report.

Another one bites the dust. :)

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You go girl, It sure is amazing watching people come to CIC with credit problems and in 6mos they turn into informed consumers and are taking a bite out of the CAs a$$eS. As an oldster on CIC it makes me warm all over to see it happen

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Thank you, thank you. :)

I've developed this whole theory on credit repair for myself...Which basically says, "You know Lovebug5, it took you 10 years to get into the mess that you're in. Since you didn't take responsibility back then, why don't you take it now and do something about your situation instead of expecting it to be done for you?"

And that's been my motivation - and it's fantastic!

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LoveBug, may I have permission to utilize your fantastic letter? It has much more witt than I could come up with..I have had this happen to me two times now! Idiot CA's- I do think it is funny in a way to hear their response when I say to them..Your company has spent money on purchasing an account that obviously cannot be collected on...there went your raise! Ha Ha

Thanks,

Blutish

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LoveBug, may I have permission to utilize your fantastic letter? It has much more witt than I could come up with..I have had this happen to me two times now! Idiot CA's- I do think it is funny in a way to hear their response when I say to them..Your company has spent money on purchasing an account that obviously cannot be collected on...there went your raise! Ha Ha

Thanks,

Blutish

Go for it! :)

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